Section-8 Company- An Overview

As per the Companies Act, 2013, the objectives of the Section-8 Companies have been well-defined. The main objectives of these companies are the promotion of Charity, Social Welfare, Art, Commerce, Education, Religion, Science, Sports, Research, and the Protection of the Environment or any such object.
The Company must aim at applying its profits or other income in promoting these objectives. It must aim at prohibiting the payment of any dividend to the members.

Section 8 Company is formed by those people who do not need or wish to earn financial or other kinds of profit from this initiative. Instead, they can look for ways to dedicate themselves to improving the social structure.

Section-8 Company Registration Eligibility:

• An Individual, HUF is eligible to start a Section 8 company in India.
• Two or more persons who will act as Directors or shareholders should fulfil all the compliances and requirements of the Section 8 company incorporation under the Act.
• There must be at least one director who should be a resident of India in the Section 8 company.
• The objective must be one or more of the following – promotion of sports, social welfare, the advancement of science and art, education, and financial assistance to lower-income groups.
• Founders, directors, members directors of the company cannot draw any remuneration in any form of cash or kind.
• No profit should be distributed among the members and directors of the company directly or indirectly.

For more details or to begin your Section-8 Company Registration, feel free to Contact Us.